********************************************************
NOTICE
********************************************************
This document was converted from Microsoft Word.
Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.
All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.
Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.
If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.
*****************************************************************
Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File No. EB-08-SE-529
In the Matter of
) Acct. No. 200932100052
Intel Corporation
) FRN No. 0015033319
)
ORDER
Adopted: March 25, 2009 Released: March 27, 2009
By the Chief, Spectrum Enforcement Division, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and Intel Corporation
("Intel"). The Consent Decree terminates an investigation by the
Bureau against Intel for possible violations of Section 302(b) of the
Communications Act of 1934, as amended ("Act"), and Parts 2, 15 and 68
of the Commission's Rules ("Rules") regarding certain equipment
marketed by Intel and a company now owned by Intel.
2. The Bureau and Intel have negotiated the terms of the Consent Decree
that resolve this matter. A copy of the Consent Decree is attached
hereto and incorporated by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree, which terminates the investigation.
4. In the absence of material new evidence relating to this matter, we
conclude that our investigation raises no substantial or material
questions of fact as to whether Intel possesses the basic
qualifications, including those related to character, to hold or
obtain any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the Act,
and sections 0.111 and 0.311 of the Rules, the Consent Decree attached
to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by first class mail and certified mail, return receipt
requested, to Peter K. Pitsch, Associate General Counsel, Intel
Corporation, 1634 I Street, NW, Suite 300, Washington, DC 20006, to
its counsel, David H. Solomon, Wilkinson Barker Knauer, LLP, 2300 N
Street, N.W., Suite 700, Washington, DC 20037-1128.
FEDERAL COMMUNICATIONS COMMISSION
Kathryn S. Berthot
Chief, Spectrum Enforcement Division
Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File No. EB-08-SE-529
In the Matter of
) Acct. No. 200932100052
Intel Corporation
) FRN No. 0015033319
)
CONSENT DECREE
The Enforcement Bureau ("Bureau") and Intel Corporation ("Intel" or the
"Company"), by their authorized representatives, hereby enter into this
Consent Decree for the purpose of terminating the Bureau's investigation
into whether certain equipment marketed by Intel and a company now owned
by Intel complied with the requirements of Section 302(b) of the
Communications Act of 1934, as amended ("Act"), and Parts 2, 15 and 68 of
the Commission's Rules ("Rules").
I. DEFINITIONS
1. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C. S:
151 et seq.
b. "Adopting Order" means an Order of the Bureau adopting the terms of
this Consent Decree without change, addition, deletion, or
modification.
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
d. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
e. "Compliance Plan" means the program described in this Consent Decree
at paragraph eight.
f. "Effective Date" means the date on which the Bureau releases the
Adopting Order.
g. "Investigation" means the investigation commenced by the Bureau in
response to Intel's May, 2008 and August, 2008 voluntary disclosures
regarding the compliance of certain equipment marketed by Intel and a
company now owned by Intel with Section 302(b) of the Act and Parts 2,
15 and 68 of the Rules.
h. "Intel" means Intel Corporation and its predecessors-in-interest and
successors-in-interest.
i. "Parties" means Intel and the Bureau.
j. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
II. BACKGROUND
2. Pursuant to Section 302(b) of the Act and Parts 2, 15 and 68 of the
Rules, radio frequency devices and terminal equipment marketed in the
United States must be authorized in accordance with the Commission's
Rules and comply with all applicable technical, administrative, and
labeling requirements. In May 2008, Intel voluntarily disclosed to the
Office of Engineering and Technology and the Enforcement Bureau that
it had recently discovered issues regarding the compliance of certain
equipment marketed by Intel with Parts 2 and 15 of the Rules. Intel
provided additional information to the Bureau in July 2008. Intel
reported that the issues arose as a result of the unauthorized actions
of a single Intel employee whose employment had since been terminated,
that Intel had immediately stopped shipment of the devices in May
2008, and that Intel promptly took various other corrective actions,
including steps to ensure that the products did not reach end users
until the equipment was authorized.
3. In August 2008, Intel also voluntarily disclosed to the Enforcement
Bureau that it had recently discovered issues regarding the compliance
with Parts 2, 15 and 68 of the Rules of certain equipment marketed by
a medical device company that Intel had acquired in May 2008. Intel
reported that the issues related to actions by that medical device
company prior to its purchase by Intel and, after discovering the
problem, Intel reported it to the Food and Drug Administration, and,
with the Food and Drug Administration, had agreed to a recall plan.
According to Intel, under that plan, non-deployed units were recalled.
Intel stated further that to minimize disruption to patient care where
the units have already been deployed in homes, it communicated to and
provided user instructions for healthcare providers caring for those
patients to show them how their patients could mitigate any
interference in the operation of those medical devices. Intel reported
that as of this date, the great majority of affected devices have been
recovered by Intel from healthcare providers, and Intel has
FCC-compliant and FDA-cleared broadband replacement units now
available for health care providers and plans to have "plain old
telephone service" replacement units available for health care
providers in approximately May of 2009.
III. TERMS OF AGREEMENT
4. Adopting Order. The Parties agree that the provisions of this Consent
Decree shall be subject to final approval by the Bureau by
incorporation of such provisions by reference in the Adopting Order
without change, addition, modification, or deletion.
5. Jurisdiction. Intel agrees that the Bureau has jurisdiction over it
and the matters contained in this Consent Decree and has the authority
to enter into and adopt this Consent Decree.
6. Effective Date; Violations. The Parties agree that this Consent Decree
shall become effective on the date on which the Bureau releases the
Adopting Order. Upon release, the Adopting Order and this Consent
Decree shall have the same force and effect as any other Order of the
Commission. Any violation of the Adopting Order or of the terms of
this Consent Decree shall constitute a separate violation of a
Commission Order, entitling the Commission to exercise any rights and
remedies attendant to the enforcement of a Commission Order.
7. Termination of Investigation. In express reliance on the covenants and
representations in this Consent Decree and to avoid further
expenditure of public resources, the Bureau agrees to terminate its
investigation. In consideration for the termination of said
investigation, Intel agrees to the terms, conditions, and procedures
contained herein. The Bureau further agrees that in the absence of new
material evidence, the Bureau will not use the facts developed in this
investigation through the Effective Date of the Consent Decree, or the
existence of this Consent Decree, to institute on its own motion, any
new proceeding, formal or informal, or take any action on its own
motion against Intel concerning the matters that were the subject of
the investigation. The Bureau also agrees that it will not use the
facts developed in this investigation through the Effective Date of
this Consent Decree, or the existence of this Consent Decree, to
institute on its own motion any proceeding, formal or informal, or
take any action on its own motion against Intel with respect to
Intel's basic qualifications, including its character qualifications,
to be a Commission licensee or to hold Commission authorizations.
8. Compliance Plan. For purposes of settling the matters set forth
herein, Intel agrees to create within 30 days of the Effective
Date a Compliance Plan related to future compliance with the Act, the
Commission's Rules, and the Commission's Orders. The Plan will
include, at a minimum, the following components:
a. Compliance Official. Intel shall appoint a Compliance Official who
will be responsible for implementation of this Compliance Plan. The
Compliance Official will be familiar with the Commission's technical
and administrative rules associated with equipment authorization and
marketing.
b. Compliance Procedures. Intel will periodically review, at least once
during the first twelve months after the Effective Date and once
during the second twelve months after the Effective Date, the
Company's policies and procedures governing its compliance with the
Commission's technical and administrative rules associated with
equipment authorization and marketing, and will make any changes to
such policies and procedures, as appropriate, to assist in compliance
with the Act, the Commission's Rules and the Commission's Orders.
c. Compliance Reports. Intel will file compliance reports with the
Commission twelve (12) months after the Effective Date and twenty-four
(24) months after the Effective Date. Each compliance report shall
include a compliance certificate from an official, at the level of
Vice President or higher, as an agent of Intel, stating that the
official has personal knowledge that Intel has complied with the terms
of the Compliance Plan set forth in this paragraph. The compliance
report shall be submitted to Chief, Spectrum Enforcement Division,
Enforcement Bureau, Federal Communications Commission, 445 12th
Street, S.W., Washington, D.C. 20554. All reports shall also be
submitted electronically to Ricardo M. Durham at
Ricardo.Durham@fcc.gov and Nissa Laughner at Nissa.Laughner@fcc.gov.
d. Termination Date. Unless stated otherwise, the requirements of this
Compliance Plan will expire 24 months from the Effective Date.
9. Voluntary Contribution. Intel agrees that it will make a voluntary
contribution to the United States Treasury in the amount of $25,000. The
payment will be made within 30 days after the Effective Date of the
Adopting Order. The payment must be made by check or similar instrument,
payable to the order of the Federal Communications Commission. The payment
must include the Account Number and FRN Number referenced in the caption
to the Adopting Order. Payment by check or money order may be mailed to
Federal Communications Commission, P.O. Box 979088, St. Louis, MO
63197-9000. Payment by overnight mail may be sent to U.S. Bank -
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis,
MO 63101. Payment by wire transfer may be made to ABA Number 021030004,
receiving bank TREAS/NYC, and account number 27000001. For payment by
credit card, an FCC Form 159 (Remittance Advice) must be submitted. When
completing the FCC Form 159, enter the Account number in block number 23A
(call sign/other ID), and enter the letters "FORF" in block number 24A
(payment type code). Intel will also send electronic notification on the
date said payment is made to Ricardo.Durham @fcc.gov and to
Nissa.Laughner@fcc.gov.
1. Waivers. Intel waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay,
or to otherwise challenge or contest the validity of this Consent
Decree and the Adopting Order, provided the Bureau issues the
Adopting Order without change, addition, modification, or deletion.
Intel shall retain the right to challenge Commission interpretation
of the Consent Decree or any terms contained herein. If either Party
(or the United States on behalf of the Commission) brings a judicial
action to enforce the terms of the Adopting Order, neither Intel nor
the Commission shall contest the validity of the Consent Decree or
the Adopting Order, and Intel shall waive any statutory right to a
trial de novo. Intel may, however, present evidence that it has not
violated the Consent Decree. Intel hereby agrees to waive any claims
it may otherwise have under the Equal Access to Justice Act, 5
U.S.C. S: 504 and 47 C.F.R. S: 1.1501 et seq., relating to the
matters addressed in this Consent Decree.
2. Invalidity. In the event that this Consent Decree is rendered
invalid by any court of competent jurisdiction, it shall become null
and void and may not be used in any manner in any legal proceeding.
3. Subsequent Rule or Order. The Parties agree that if any provision of
the Consent Decree conflicts with any subsequent rule or Order
adopted by the Commission (except an Order specifically intended to
revise the terms of this Consent Decree to which Intel does not
expressly consent) that provision will be superseded by such
Commission rule or Order.
4. Successors and Assigns. Intel agrees that the provisions of this
Consent Decree shall be binding on its successors, assigns, and
transferees.
5. Final Settlement. The Parties agree and acknowledge that this
Consent Decree shall constitute a final settlement between the
Parties. The Parties further agree that this Consent Decree does not
constitute either an adjudication on the merits or a factual or
legal finding or determination regarding any compliance or
noncompliance with the requirements of the Act or the Commission's
Rules and Orders. The Parties agree that this Consent Decree is for
settlement purposes only and that by agreeing to this Consent
Decree, Intel does not admit or deny noncompliance, violation or
liability for violating the Act or Rules in connection with the
matters that are the subject of this Consent Decree.
6. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
7. Paragraph Headings. The headings of the Paragraphs in this Consent
Decree are inserted for convenience only and are not intended to
affect the meaning or interpretation of this Consent Decree.
8. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this
Consent Decree.
9. Counterparts. This Consent Decree may be signed in any number of
counterparts (including by facsimile), each of which, when executed
and delivered, shall be an original, and all of which counterparts
together shall constitute one and the same fully executed
instrument.
________________________________
Kathryn S. Berthot
Chief, Spectrum Enforcement Division
Enforcement Bureau
________________________________
Date
________________________________
D. Bruce Sewell
Senior Vice President and General Counsel
Intel Corporation
________________________________
Date
47 U.S.C. S: 302a(b).
47 C.F.R. S:S: 2.1 et seq., 15.1 et seq., and 68.1 et seq.
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 U.S.C. S: 302a(b).
47 C.F.R. S:S: 2.1 et seq., 15.1 et seq., and 68.1 et seq.
47 U.S.C. S: 302a(b); 47 C.F.R. S:S: 2.1 et seq., 15.1 et seq. and 68.1 et
seq.
47 U.S.C. S: 302a(b).
47 C.F.R. S:S: 2.1 et seq., 15.1 et seq. and 68.1 et seq.
See 47 C.F.R. S:S: 2.1 et seq., 15.1 et seq.
See 47 C.F.R. S:S: 2.1 et seq., 15.1 et seq. and 68.1 et seq.
Federal Communications Commission DA 09-670
2
Federal Communications Commission DA 09-670